Materiality analysis

The landscape is evolving, with tighter regulation, higher energy prices and changing market demand, making ESG relevant to investment performance. But ESG is very broad. We need clear focus and concrete actions. Therefore, we prioritise certain areas over others, and adapt over time as the market evolves.

Slättö's priorities

Energy use

Reducing operational energy sits at the top of our priority list. It increases net operating income (NOI) from the assets, leading to higher asset value, lower risk, and potentially tighter yields.

Tenant satisfaction and wellbeing

They support lower vacancy, higher tenant retention and stable rent rolls. Our approach is active asset management that measures these aspects and continuously and cost-effectively improves.

Embodied carbon

Managing embodied carbon anticipates regulatory changes and broadens the buyer pool, as large Nordic real estate firms apply maximum carbon budgets. Embodied carbon is a big part of Nordic real estate’s CO₂ impact.

Physical climate risks

Addressing physical climate risks reduces the probability and cost of asset damage from flooding, fires and extreme heat.

Supply chain and safety

Construction supplier code and contractor oversight target site safety to avoid risk.

Robust governance

It preserves the licence to operate and maintains investor, lender and government trust.

How we prioritise

We prioritise through a materiality analysis. Slättö’s materiality analysis identifies ESG issues that combine measurable sustainability impacts with concrete financial consequences for real estate returns.

The analysis rests on a review of upcoming legislation, market evidence and direct dialogue with key stakeholder groups — notably tenants, investors and banks.

This materiality analysis serves as the foundation for Slättö’s ESG due diligence, and is carried into the asset business plans after acquisition.

Sustainability impact: High

Financial impact: Medium

Embodied carbon (2)
Green, biodiverse spaces (4)
Supply chain business ethics and work safety (10)
Community (11)

Sustainability impact: High

Financial impact: High

Operational energy (1)

Sustainability impact: Medium

Financial impact: Medium

Physical climate risks (3)
Waste, water and certifications (5)
Diversity and wellbeing (7)

Sustainability impact: Medium

Financial impact: High

On-site pollution (6)
Slättö as an attractive workplace (8)
Tenant attraction and wellbeing (9)
Regulatory compliance (12)
Internal governance (13)
Transparent reporting (14)

Material issue list

ESG issue		Financial impact
1	Operational energy	Reducing energy use and installing renewable energy production in buildings increases net operating income. It also secures long-term value as market preferences shift towards low-carbon assets.
2	Embodied carbon	Designing construction projects with lower climate impact will help meet future regulation and shifts in market preferences.
3	Physical climate risks	A warming climate will increase flooding, fires and extreme temperatures, which can damage real estate assets. With proactive measures, future costs can be reduced.
4	Green, biodiverse spaces	Green areas make assets and neighbourhoods more attractive to tenants. We meet municipalities’ preferences by increasing green spaces and including biodiversity aspects.
5	Waste, water and certifications	In new buildings and some cash flow assets, certifications are important for tenants and future buyers. Certifications cover many aspects, from waste and water to quality and wellbeing.
6	On-site pollution	With environmental due diligence before investments, we can reduce the potential costs of addressing pollution in older assets.
7-8	Diversity and wellbeing, Slättö as an attractive workplace	We need to attract and retain top talent to continue delivering market-leading returns to investors.
9	Tenant attraction and wellbeing	Initiatives for tenant satisfaction and wellbeing contribute to lower vacancies, lower turnover and willingness to pay higher rent.
10-14	Supply chain business ethics and work safety; Community; Regulatory compliance; Internal governance; Transparent reporting	Licence to operate, Slättö as a trusted and preferred partner for key business stakeholders.